Hundreds of thousands of couples navigate divorce each year, with over 670,000 splits recorded across the U.S. in 2022. That equates to a rate of 2.4 per 1,000 people in 45 states! Many face tough choices about dividing their real estate, especially the house in a divorce.
From our experience, one question stands out: Can I sell my house during a divorce?
This guide will walk you through your options and the Virginia-specific laws to help you achieve the best outcome for your fresh start.
This article on house selling options during a divorce is part of our larger resource hub. For a broader look at the journey, see our post, Selling A House During Divorce.
If you are weighing the timing, our next article will help you decide whether to sell house before or after divorce.
Short Summary
- Selling a house during divorce in Virginia is possible with planning and legal approval.
- Virginia follows equitable distribution, meaning assets are divided fairly, not always equally.
- Options include selling together, a buyout, or a deferred sale tied to child custody.
- Professional help from a divorce attorney, real estate attorney, and real estate agent is essential for the best outcome.
- Couples can protect ownership rights, handle mortgage payments, and move forward with a fresh start.
Understanding Virginia Divorce & Property Laws
So, you’re facing a divorce and own a home. This is a challenging spot. Virginia law has specific rules for this exact situation. Let’s break them down simply.
Is Virginia a Community Property State?
No, it’s not. Virginia is an equitable distribution state. This is a key difference from community property states. Equitable distribution means a court divides marital assets fairly, but not always equally. The goal is a fair split based on many factors.
What Counts as Marital Property?
Marital property includes most assets acquired during the marriage. This covers both real or personal property. Your family car is personal property. Your marital home is real property.
The family home is often the largest shared asset. It receives special attention in family law cases.
Who Can I Sell My House During a Divorce?
You can’t sell without permission. Neither the one spouse nor the other spouse can force a sale alone. And if the spouses are in disagreement, court orders are required.
Both names on the deed? Both must agree to the sale. This protects everyone’s ownership rights.
How is the House Divided?
A judge considers many things. They look at the marital residence’s value and decide how to split the proceeds from a sale. The needs of a custodial parent with young children are also important. The outcome involves all other marital assets too.
Think of it like this: if one spouse inherited a house before marriage, that’s likely separate property. But if you used marital funds for a new roof, things get complex. This is why professional guidance is crucial.
But remember: Laws vary greatly by state. This information applies specifically to Virginia.
Key Options for the Marital Home
Once you understand the legal landscape, you can explore the common paths forward for your house. Each option has unique benefits and challenges to weigh carefully. Let’s examine the three primary routes divorcing couples take.
1. Sell the House Together
This is often the cleanest solution for a fresh start. The goal is to sell your house, divide the proceeds, and move forward independently.
Pros: You both get a clean break. An equal split of the profits from the home sale eliminates future co-ownership arguments. It closes a shared chapter.
Cons: Be prepared for closing costs and real estate agent fees. There may be a capital gains tax implication if your profit exceeds the IRS exclusion limit ($250,000 for singles). The timeline can feel lengthy.
The Process: The selling process involves setting a price, listing the home, welcoming potential buyers, negotiating offers, and working with an escrow company to finalize the house sale.
This path finalizes the asset cleanly. For many, this clarity is worth the effort.
2. One Spouse Buys Out the Other
Sometimes, one spouse wishes to keep the family home. This is where a buyout comes in.
How it Works: The house gets a professional appraisal. The spouse buys out the other spouse’s share of the equity. This often requires the buying spouse to secure a new loan to pay off the existing mortgage and the buyout amount.
If this is the case, a mortgage lender will need to approve this based on their single income.
Challenges: Qualifying for a new mortgage alone can be difficult. The buying spouse needs more money for a new down payment and must cover all costs alone. This is a complex financial move.
Guidance is Key: This option demands a strong attorney-client relationship. Your divorce attorney and a real estate attorney are essential legal professional guides here.
A successful buyout severs financial ties while letting one person keep the home.
3. Keep the House (Co-Ownership or Deferred Sale)
Sometimes, a temporary solution is the answer. This is common when one party, often the custodial parent, remains in the home for stability.
The Plan: You might co-own the home for a set period after the divorce. A deferred sale agreement postpones the sale until a future date, like when the youngest child turns 18.
Risks: This ties you financially to your former spouse for years. You also have to agree on covering the monthly mortgage, property taxes, and maintenance. As you can surmise, disagreements can easily arise from this situation
Get it in Writing: This arrangement must be meticulously detailed in your divorce settlement or divorce agreement. A court order can make it official.
This option provides short-term stability but requires incredible trust and a solid legal plan.
Myths vs. Reality: Divorce Home Sales
Let’s clear up some common confusion about divorce selling. Knowing the truth can save you a lot of stress!
- Myth: The one spouse can force a sell the house without the other’s consent.
Reality: This is almost never true. Both owners must agree, or a judge must order it.
- Myth: Courts always force a sale.
Reality: Judges prefer you to agree. They only intervene if the former couple is completely stuck.
- Myth: You have to sell my house fast and accept a lowball offer.
Reality: With a good agent, you can still get top dollar. A quick sale does not mean a cheap one.
- Myth: Keeping the house is always the best outcome.
Reality: It depends entirely on your financial situation. The emotional desire to keep the home must be balanced against the financial reality of maintaining it on a single income.
Steps to a Smooth Divorce Sale
Ready to sell the property during a divorce? Follow these steps to navigate the divorce process and secure a fresh start!
Build Your Team
A strong team makes the real estate transaction easier. Assemble experts to guide you.
- Divorce attorney: Clarifies legal steps in the divorce proceeding.
- Real estate attorney: Ensures the divorce agreement protects your interests.
- Mediator: Helps find common ground if tensions rise.
- Real estate agent: Manages the sale for the best selling price. A Richmond couple hired a local agent and sold in three weeks.
Prep the House
Get the property ready to avoid delays. Address financial and legal details upfront.
- Clear mortgage payments: Settle any overdue amounts with lenders.
- Resolve liens: Check for tax or other claims on the home.
- Gather documents: Deeds and titles speed up the process.
- Assess condition: A quick inspection prevents surprises for buyers.
Agree with Spouse or Get Court Approval
Both spouses must agree for a smooth sale. Open communication is key.
- Mediation: A neutral party helps reach an equal interest agreement.
- Discuss terms: Agree on splitting proceeds fairly.
- Seek common ground: Avoid court battles when possible.
- Court approval: If no deal, a judge may order the sale.
Sell the House
Time to move forward with the sale. Focus on attracting buyers efficiently.
- Set a listing price: Work with your agent for market value.
- Market to buyers: Stage the home to draw interest.
- Use an escrow service: Ensures a secure transaction.
- Cover closing costs: Budget for fees to finalize the sale.
After the Sale
Wrap up the process cleanly. Plan for the next steps carefully.
Example: A Richmond seller paid off debts and moved closer to family.
Divide proceeds: Follow the divorce agreement for fair splits.
Handle capital gains tax: Consult a tax pro to minimize costs.
Start fresh: Use funds for new goals, like renting or buying.
Final Thoughts
Yes, you can absolutely sell your house during a divorce. It’s challenging, but with the right plan and people, it is completely manageable. Proper guidance makes all the difference.
Don’t try to navigate this alone, however. Protect your future by consulting with a trusted Richmond real estate agent and a skilled divorce attorney. This professional team will help you secure the best outcome for your financial future.
Your fresh start is within reach. For more resources and local expertise, we invite you to visit our homepage to connect with professionals ready to help you today.
